Payroll cost
10 · PeopleIs the team cost in proportion to the business?
For many businesses, people are the biggest cost. Payroll cost shows whether the size of the team and what it is paid fit what the business earns.
What to track
Payroll as a share of revenue
Total pay and related costs divided by revenue.
Overtime
Hours paid beyond the normal day. Steady overtime usually means work is badly planned or the team is the wrong size.
Output per person
Revenue, jobs or units for each person on the team.
Review it monthly, and check every payroll run for mistakes before it is paid.